QPA Review 2022 part 1

Based on the informaiton in the excerpt, what economic condition indicates that Sweden's economy is based on socialism despite its use of free market reforms?

• Reduction in government spending

• Privatization of the social welfare system

• High levels of administrative inefficiency

• Government funding of education and healthcare

Jenny wants to buy a computer and a new television before she leaves for college.

         She only has enough money to purchase the computer.

Which of the following is the

         opportunity cost of purchasing the computer?

• College tuition money

• Moving expenses

• New computer

• New television

Which of the following would most likely cause the shift shown on the graph?

• A new, popular model of cell phone just came on the market

• The cost of parts for cell phones has gone up

• Cell phone salesmen are working overtime to sell their phones

• The cell phone company made a large profit this year

Which of the following is described by the characteristics listed in the box?

• a Monopoly

• an Oligopoly

• Pure competition

• Monopolistic competition

Scarcity is a basic economic problem because--

• Resources are limited

• Governments limit produciton

• Opportunity costs limit demand

• People have trouble making choices

Which of the following best completes the graphic organizer?

• Problems of command economies

• Benefits of the free enterprise system

• Solutions to reducing government debt

• Arguments for expanded government regulation

What type of market structure is described by the information in the box?

• Oligopoly

• Natural monopoly

• Pure competition

• Monopolistic competition

The basic idea of choice presents which of the problems in economics?

• People get to decide what they want

• Businesses can sell what they want

• Decisions produce costs

• Choice is a way of life

Recently the price of a popular perfume has increased by $10.

How will the price change likely affect the quantity demanded and supplied?

• Supply will stay the same, and demand will increase

• Supply will decrease, and demand will increase

• Supply will increase, and demand will decrease

• Supply will increase, and demand will stay the same

The outcome of the scenario above is an example of which of the following?

• Non-price determinant of demand

• The concept of competition

• The concept of laissez-faire

• The idea of profit motive